The macroeconomic implications of consumpion: state-of-art and prospects for the heterodox future research

Abstract

The recent US economic scenario has motivated a series of heterodox papers concerned with household indebtedness and consumption. Though discussing autonomous consumption, most of the theoretical papers rely on private investment-led growth models. An alternative approach is the so-called Sraffi an supermultipler model, which treats long-run investment as induced, allowing for the possibility that other fi nal demand components – including consumption – may lead long- run growth. We suggest that the dialogue between these approaches is not only possible but may prove to be quite fruitful